A service computation date (SCD) is a key factor in determining a federal employee’s eligibility for various benefits or programs. The calculation method for an SCD depends on the specific benefit involved.
Federal employees have four distinct SCDs:
- Leave
- Thrift Savings Plan (TSP)
- Reduction in Force (RIF)
- Retirement
Leave SCD
The Leave SCD sets the amount of annual leave a federal employee earns each pay period: four, six, or eight hours. This detail is recorded in block #31 of the Standard Form (SF) 50. The Leave SCD includes most military service, except for retired military members, whether or not they’ve paid the military deposit.
Thrift Savings Plan (TSP) SCD
The TSP Service Computation Date establishes when a federal employee becomes vested in their Thrift Savings Plan, applicable only to those under FERS. Vesting means the TSP participant can keep Agency Automatic (1%) Contributions (and earnings) after meeting a service length requirement. Most FERS employees vest in the TSP after three years of service.
Reduction in Force (RIF) SCD
The RIF SCD is one of four components used to assess a federal employee’s retention status during a Reduction in Force at an agency. It includes all creditable military and civilian service, adjusted with additional credit (up to a maximum of 20 years) based on performance reviews. The “adjusted” RIF-SCD is listed on the retention register and included in the RIF notice provided to an affected employee.
Retirement SCD
The Retirement SCD reflects the service credited toward determining a federal employee’s retirement eligibility. It’s generally the date of their first federal appointment under FERS. Typically, the Leave SCD and Retirement SCD align, unless the employee is a retired military member—in which case, they should check with their human resources office to verify their Retirement SCD.
The Retirement SCD is critical for determining federal retirement eligibility and excludes sick leave. While sick leave contributes to the retirement annuity calculation, it doesn’t influence eligibility.
Service time that may affect the Retirement SCD and isn’t creditable for retirement includes:
- Excessive leave without pay (LWOP)
- Federal service with an unpaid deposit
- Temporary service after 1989 (FERS only)
- Breaks in federal service longer than three days
- Military service with an unpaid deposit
The Retirement Service Computation Date is one of two essential factors that determine when a federal employee can retire and the size of their FERS annuity. It’s highly recommended you verify your Retirement SCD with your personnel office.
Schedule a complimentary consultation with a Federal Retirement Consultant® who can help you understand your federal benefits.
